Procurement strategy consulting can help your business save and grow…here’s how
The process of procurement strategy consulting exists to ensure that organisations operate an effective and efficient purchasing process. Ultimately, all our clients want the same thing. It’s our job to navigate their individual challenges and make sure they’re able to obtain value for money from suppliers.
Procurement strategy consulting services can take many different forms. While the outcome is largely the same, each organisation will face its own unique barriers and operate differently. The first step for us is to assess what the client needs. Are they operating a large, complex procurement function with lots of moving parts? Or are they just setting up a purchasing strategy and need support with where to begin?
With over two decades of experience, we are well-equipped to tackle any procurement strategy challenge.
In this blog, we’ll answer some of our most frequently asked questions when it comes to procurement strategy consulting:
- What is the role of a procurement strategy consultant?
- How do organisations benefit from procurement strategy consulting?
- What are the most common types of procurement strategies? (That’s a difficult one because it completely depends on the organisation, but we’ll give you some examples.)
What is the role of a procurement strategy consultant?
So, let’s start with the basics, what are some of the main duties a procurement strategy consultant performs?
- Working with the client to define an effective strategy
- Training and providing ongoing support to anyone in the business who will be involved in the process
- Performing reviews of the client’s current strategy
- Advising on, and developing, policies and strategies
- Supporting and delivering contract negotiation and management
- Strategic sourcing
- Report writing including options appraisals and providing recommendations.
As you can see, procurement consultants wear a lot of hats! To perform these duties to a high standard, consultants often have to meet certain criteria. They need to hold relevant qualifications and have certain skills and experience, such as:
- Being MCIPS qualified
- Holding a degree or masters qualification
- Having a track record of delivering successful procurement solutions
- Being able to critically review quantitative and qualitative data
- Being an exceptional communicator
- Having the ability to present data, draft reports and set procurement policies.
These qualities and qualifications help clients to put their trust in the procurement strategy consultant.
In the client’s organisation, it’s the consultant’s responsibility to assess their current strategy, find opportunities for improvement and implement them. In situations where the client is new to the purchasing process, procurement strategy consulting is vital. The consultant will ensure that no time or resources are needlessly wasted. They will implement strategies that can be maintained with the organisation’s current resources.
How do organisations benefit from procurement strategy consulting?
Many organisations don’t realise the results they can achieve through a good practice procurement strategy. On average, organisations can see profitability increases between 5% and 20%. Public sector organisations can expect the same in reduced BAU (business as usual) costs.
With these results at stake, it’s unsurprising that many organisations choose to invest in their procurement by hiring a consultant. By investing in procurement strategy consulting, organisations could reap huge, ongoing benefits.
5 types of common procurement strategies
There are so many types of procurement strategies out there, that it’s easy to feel overwhelmed. Here are just five tactics that are commonly recommended during procurement strategy consulting:
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Consolidating your data
Especially for larger organisations, data can be scattered across numerous systems and shared between different teams.
Centralising this data can be a powerful way of accurately assessing data and getting a clear picture of opportunities. To implement an intelligence process, the data should first be centralised and available in a comprehensive way.
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Make sure you’re all on the same page
There are many ways to improve procurement performance. Your whole procurement chain needs to have the same focus and goal. Is it reducing costs and spending? Is it making the invoicing process more efficient? The core focus needs to be agreed upon.
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Mitigate risks
This one might sound obvious, but sometimes organisations put themselves in precarious positions unintentionally. Trying to meet demand and achieve deadlines can cause a cloud of fog to cover the logic.
If you need to try a new supplier, for example, choose your times well. Try to anticipate and mitigate the risk of trialling a new supplier at a peak production time. Instead, give yourself plenty of time to navigate any potential risks by trialling new avenues during quieter periods.
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Collaborate with other departments
In successful teams, the procurement department collaborates with other teams to gather a range of intelligence. Put your procurement team in the best position, enabling them to identify opportunities and implement innovative solutions. They can’t do this if they’re not communicating with the rest of the business function.
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Maximise technology
We all know that advancements in technology can massively impact our capabilities. But actually, implementing this technology often slips down our to-do lists. Maybe because learning the new system is daunting or the technology itself is expensive. Currently, procurement strategy consulting will inevitably include investigating the use of predictive analytics. It’s something we’re seeing more and more of in the purchasing field and the benefits can’t be ignored.
With the ability to leverage data and use AI, it’s no surprise that successful companies are implementing this technology. A study by the Aberdeen Group found that companies are adopting this technology at a rate of more than 20% per year!
Summary
We’ve reached the end of our blog on procurement strategy consulting, and we’ve covered a lot. Here’s a quick re-cap:
- The role of a procurement strategy consultant is diverse. It requires the consultant to possess a range of qualifications and experience.
- On average, organisations can see profitability increases between 5% and 20% when investing in good procurement. Public sector organisations can expect the same in reduced BAU (business as usual) costs. So, if you’re still wondering – yes, your procurement strategy is definitely important enough to seek expert support with.
- There are numerous strategies out there for improving procurement processes and seeing results – we listed five in this blog. However, the strategy you should choose entirely depends on your organisation and your goals. A procurement strategy consultant would complete a thorough analysis of your organisation and recommend appropriate strategies.
Need help with your procurement strategy?
Whether you already have an established procurement strategy, or you’re starting from scratch, we can help. Even the most thorough strategies can benefit from an impartial review. Our consultants are here to help, no matter your sector, industry, or the size of your organisation.
Our services
Procure Consult
With Procure Consult, we offer support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance with any stage, as and when required.
Procure Health Check
With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.
Procure Analyse
The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Procure Analyse is also offered as part of Procure Health Check or as a standalone service.
Procure Outsourcing
With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement function of your organisation.
Procure Post
Are you trying to find a supplier for your project? Post your tendering opportunity onto any of our 11 sector-specific portals for FREE with Procure Post!
Housed by our sister company, Hudson Discover, our portals host thousands of tendering opportunities for organisations of all sizes. For an additional cost, we’ll even help you identify your requirements and find the most suitable suppliers for your business.
Get in touch for a consultation and find out how we can help your business drive better value from procurement.
Check out our other blogs for further Procurement Insights:
